US ethylene margins fell during H1-2015 alongside crude-driven declines in pricing, but were offset by margin expansion for polyethylene, as per chemical maker LyondellBasell in Argus.com.
Lyondell's ethylene margins fell to roughly 25¢/lb in by July 2015 from nearly 80¢/lb at the start of 2014, Sergey Vasnetsov, Lyondell's senior vice-president of strategic planning and transactions, said in a presentation at a Credit Suisse conference. At the same time, polyethylene margins grew from roughly 5¢/lb to more than 20¢/lb during the same period, as supplies tightened this year.
Lyondell forecasts global ethylene capacity will grow to nearly 425bn lb/yr by 2020 from approximately 350bn lb/yr now, exceeding demand growth to 375bn lb/yr from 325bn lb/yr during the same period, according to the investor presentation. The petrochemical manufacturer estimates global cracker operating rates will remain at more than 9pc.
Lyondell's north American operations use NGL feedstock, primarily ethane, for 90pc of its ethylene production.
18-Sep-15 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}